59% of Small Businesses Need Two Calls to Track a Late Payment. Late payments can lead to more than just delayed revenue for small businesses. They can lead to a loss in productivity as well
A recent survey from WePay and Survata found that 59 percent of small businesses have to follow up with customers on late payments an average of two times. The amount SME’s are owed in the UK is around £44.6bn, with 21% of businesses waiting on invoices of over £25K and 9% over £100K, so these are substantial debts to make business owners seriously worry about cash flow.
For small businesses, this means that valuable resources are tied up. Instead of having your team focused on all of the different tasks that you need accomplished around the holidays, they’re tied up tracking down those payments.
The survey also found that late payments can be especially impactful toward the end of the year, when many businesses report earning the bulk of their revenue but may also have additional expenses to deal with. In fact, 21 percent of the respondents in WePay’s second annual SMB & Money survey said they had to deal with late payments at the end of last year.
If you’re missing out on cashflow due to late payments, contact us, we can help. Give us a ring today on 0161 280 4010, drop us an email at lynnew@regencyfactors.com or browse our website for more details on how our facilities work.